Page:United States Statutes at Large Volume 90 Part 1.djvu/371

 90 STAT. 321

PUBLIC LAW 94-260—APR. 8, 1976 "(c)

DAMAGES UPON REJECTION OP EXECUTORY CONTRACTS.—If

an

executory contract or a n unexpired lease is rejected under the plan or under section 8 2 (b), any person injured by such rejection may assert a claim against the petitioner. The rejection of an executory contract or unexpired lease constitutes a breach of the contract or lease as of the date of the commencement of the case under this chapter. The claim of a landlord for injury resulting from the rejection of an imexpired lease of real estate or for damages or indemnity under a convenant contained in such lease shall be allowed, b u t shall be limited to an amount not to exceed the rent, without acceleration, reserved by such lease for the year next succeeding the dat« of the surrender of the premises to the landlord or the date of reentry of the landlord, whichever first occurs, whether before or after the filing of the petition, plus u n p a i d accrued rent, without acceleration, u p to the date of such surrender or reentry. The court, shall scrutinize the circumstances of an assignment of a future rent claim and the amount of the consideration paid for such assignment i n determining the amount of damages allowed the assignee of that claim. " SEC. 89. PRIORITIES.—The following shall be paid in full in advance i l USC 409. of any distribution to creditors under the plan, in the following o r d e r: " (1) The costs and expenses of administration which a r e incurred subsequent to the filing of a petition under this chapter. " (2) Debts owed for services or materials actually provided within three months before the date of the filing of the petition under this chapter. " (3) Debts owing to any person, which by the laws of the United States (other than this Act) are entitled to priority. " SEC. 90. F I L I N G AND TRANSMISSION OF P L A N AND MODIFICATIONS.— H USC 410.

" (a) F I L I N G. — The petitioner shall file a plan for the adjustment of the petitioner's debts. I f such plan is not filed with the petition, the petitioner shall file the plan a t such later time as the court, upon its own motion or upon application of the petitioner, sets. A t any time prior to the confirmation of a plan, the petitioner, or any creditor, if the petitioner has consented in writing to the modification to he filed by the creditor, may file a modification of the p l a n; b u t the modification shall comply with the provisions of this chapter. " (b) TRANSMISSION OF PLAN AND MODIFICATIONS.—As soon as prac-

ticable after the plan or any modification of the plan has been filed, the court shall set a time, which shall be ninety days from the filing of the p l a n or any modification of the plan, unless the court, for good cause, sets some other time, within which creditors may accept or reject the plan and any modification of the plan. The petitioner or such other person as the court designates shall transmit by mail a copy of such plan or modification, or a summary and any analysis of such plan or modification, a notice of the time within which the plan or modification may be accepted or rejected, and a notice of the right to receive a copy, if i t has not been sent, of such plan or modification, to each creditor whose claim is affected by the plan, to each special tax payer affected by the plan, and to any party in interest that the court designates. Upon request by a rexjipient of such summary and notice, the petitioner or such other person as the court designates shall transmit by mail a copy of the plan or modification to that recipient. The court Notice and shall, after hearing on notice, determine any controversy as to whether hearing, a claim of a creditor o r class of creditors is a claim affected by the plan and as to whether a special tax payer is a special tax payer affected by the plan.

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